Description

Canada Consumer & Retail Q1 2018 Description

BMI View: We hold a more cautious outlook for the Canadian consumer in 2018, as the strong growth momentum seen over 2017 is likely to fade. While an improving labour market, low inflation and wealth effects from a booming housing market led to a surge in consumer confidence and propelled retail sales over the course of 2017, we believe these positive impacts have now been factored in. Rising interest rates and high levels of household debt will lead to weaker consumption growth in 2018.